FHA Loan Limits Michigan 2022 – FHA Loan Limits By County and Home Type

Michigan is a great state to live in and enjoy the Midwest lifestyle. It’s a great place to do business, start a family, and enjoy everything that the great outdoors has to offer. The housing market in Michigan is unique due to the many lakes surrounding the state. Although the summers in Michigan are brief, they are some of the best due to the easy-going lake lifestyle along with plenty of festivals and events to keep your family entertained and together.

One of the unique parts of living in Michigan is the many different real estate markets across the state. Due to the unique real estate market in Michigan, there is quite a bit of real estate price variations across the state. If you’re looking to purchase or refinance a property in Michigan as a first-time home buyer, it’s useful to know the different FHA loan limits in Michigan by county and home type.

Editorial Note: All data regarding loan limits is pulled directly from the FHA and is current as of 2022. These numbers are subject to change and evaluated by the FHA each year.

Michigan FHA Loan Limits by County and Home Type

FHA Loan Limits in Michigan Explained

In 2022, the FHA loan limits in Michigan for a single-unit property was $420,680. This was both the floor amount and the ceiling amount as no county in the state of Michigan had a median sales price that was over this amount. The highest median home sales price was $295,000 in Washtenaw county while the lowest was $60,000 in Luce county.

One thing you will notice is that there are many different counties across the state of Michigan, but there is zero fluctuation in FHA loan limits across the state for different home types. This indicates that the median home sales price in the state of Michigan is well below the conforming loan limits set for conventional mortgages. 

How to Qualify for an FHA Loan in Michigan

Michigan borrowers who are interested in getting an FHA loan will have to pass standard FHA loan requirements. FHA loans in Michigan can help borrowers who have less cash and lower credit scores qualify for a mortgage. In addition, there are first-time homebuyer programs that can help borrowers qualify for a mortgage with down payment assistance options and more.

Michigan FHA Loan Requirements

If you’re a first-time homebuyer or have purchased a home in the past, below are the FHA requirements you need to meet to qualify for a mortgage. One great thing about Michigan is that there isn’t a shortage of mortgage lenders. If your FHA loan doesn’t get approved by one lender, don’t let that stop you. Try another lender who may have less stricter qualification requirements.

  • FICO score at least 580 = 3.5% down payment
  • FICO score between 500 and 579 = 10% down payment
  • Mortgage insurance is required
  • DTI of less than 43%
  • The home must be the borrower’s primary residence
  • The borrower must be employed and have a steady income

Recommend Reading: Best Cities to Retire in Michigan

How Are FHA loan Limits Determined in Michigan?

The FHA loan limits in Michigan are subject to change each year. The loan limits are based on a set percentage of the conforming loan limits set by FHFA for conventional mortgages. Conventional loan limits reflect changes in the average U.S. home prices over the past year. The conventional loan limits are composed of county-level limits for both high-cost and low-cost areas.

FHA Loan limit calculation explained:

The 2022 low-cost limit in Michigan or commonly referred to as “floor” is $420,680 for a single-family home. It is 65% of the national conforming loan limit of $647,200. Keep in mind that this is for a single-family home. The low-cost loan limit goes up with each additional unit:

  • $538,650 for a two-unit property
  • $651,050 for a three-unit property
  • $809,150 for a four-unit property

As such, if you happen to be buying a home in a more expensive part of the state, the high-cost FHA loan limits will be higher.

Michigan FHA Lenders

Below are some of the most popular FHA lenders in Michigan along with their minimum FHA credit score requirements in order to qualify.

These are some of the top rates mortgage lenders in Michigan that extend FHA loans to qualified borrowers.


Does Michigan Have a First Time Homebuyer Program?

Michigan offers first-time homebuyers assistance through their MI Home Loan program. This program is extended to first-time homebuyers that have not owned a property in the past. However, it’s worth noting that buyers still have to meet the FHA loan requirements.

Does the FHA Maximum Loan Amount Include MIP?

When FHA loan limits are set, they do not include the amount of upfront mortgage insurance payment in the loan amount. The MIP amount is not included in the FHA loan limit.

Who is the biggest mortgage lender in the state of Michigan?

The biggest retail lender in Michigan is Quicken Loans with a loan origination volume of $351 billion in 2021.